Liz Young of The Wall Street Journal reports that suppliers are stepping up efforts to reach shoppers and are having to mount costly new supply chains built to the task. She writes:
Apparel makers including Levi Strauss, Skechers and Canada Goose are trying to get closer to their customers. Doing that will require nailing the nuts and bolts of retail logistics.
The stalwarts of department-store sales are taking the strategic step into direct-to-consumer (DTC) sales, reasoning that the investment is needed to kick growth into a higher gear and potentially reset the future of their businesses. The strategy includes mastering difficult operations like home delivery as well as taking on the broader business of stocking more of their own bricks-and-mortar stores. […]
The Toronto-based company has expanded its own network of bricks-and-mortar stores and said its direct-to-consumer business accounted for 84% of its revenue in the quarter ended Dec. 31, up from 78% the previous year.
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